MANUAL ON AUDIT

OF

LAND REVENUE

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 FOR USE IN INDIAN AUDIT AND ACCOUNATS DEPARTMENT

OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL (AUDIT),

BIHAR, PATNA

REVENUE AUDIT MANUAL

PATNA

LAND REVENUE

ISSUED BY AUTHORITY OF THE PRINCIPAL ACCOUNTANT GENERAL

(AUDIT),

BIHAR, PATNA

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 TABLE OF CONTENTS

Chapter- 1 Introduction 4
Chapter- 2 Organisational set-up. 7
Chapter- 3 Classes of tenants, procedure of settlement, 9
Levy, assessment and collection of rent cess etc.
Chapter- 4 Survey settlement remission, suspension of rent 13
and alienation of Government lands.
Chapter- 5 Miscellaneous provisions. 16
Chapter- 6 Principles and procedures of audit and drafting 25
reports.
Chapter- 7 Audit checks and drafting of reports. 27
Chapter- 8 Statutory records and registers. 35
Chapter- 9 Explanatory notes on technical and vernacular 38
terms.
Chapter- 10 Copies of important executive decisions and 41
instructions.
Chapter- 11 Standard of review of internal control in Land 46
Revenue
Check List 55
Audit design matrix 57

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 CHAPTER-1
INTRODUCTION

Constitutional Provision:

1.1 Under Article 149 of the Constitution of India, the Comptroller and Auditor
General of India is to perform such duties and exercise such powers, in
relation to the accounts of the Union and of the States as may be prescribed
by or under any law made by the Parliament. Accordingly, with the enactment
of the Comptroller and Auditor General’s (Duties, Powers and Conditions of
Service) Act, 1971 the duty of audit of receipts has been specifically entrusted
to the Comptroller and Auditor General. Under Section 16 of the Act, it shall
be his duty to audit all receipts which are payable into the Consolidated Fund
of India and of each State and of each Union Territory having a Legislative
Assembly and to satisfy himself that the rules and procedure in that behalf are
designed to secure an effective check on assessment, collection and proper
accountable of revenue are being duly observed and to make for this purpose
such examination of the accounts as he thinks fit and report thereon. The audit
of land revenue along with other principal receipts of the State Government
has been taken up as statutory responsibility by the Comptroller and Auditor
General of India from 1972-73.

Evolution of Land revenue:

1.2 Land revenue is one of the oldest sources of revenue of the Government. It
finds mention even in our oldest scriptures, but the mode of assessment and
collection of land revenue has been in a changing process from time
immemorial. Under ancient Hindu administration, land revenue used to be
assessed and collected in the shape of a prescribed share of crop varying from
1/6th to 1/12th. The system of crop share continued upto the early period of
Mughal Empire. It is Shershah, anAfgan ruler, who for a stable Empire
perceived the idea of steady revenue for the treasury and a fair for the
peasantry. He, therefore, gave option to his subjects to pay rent, in kind or
cash, being 1/3rd share of average produce. He introduced direct settlement of
land with raiyats taking written kabuliat or agreement from them and in return
giving them Pattas (title deeds). He insisted upon land measurement. It was
measured as the Bighas by means of ropes (replaced by bamboos under
Akbar). Due to short spell of rule he, however, could not establish this system
known as the Zabti (or regulation) system where the classification and
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measurement of land and the direct settlement with the raiyats existed. The
State demand of land rent was fixed at 1/3rd of the average price of the
produce. For the revenue administration, the Subah (Province) was divided in
seven or eight Sarkars, each having parganas or Mahals which were divided
into several Mauzas (revenue villages). The Diwan, Amalguzar, Sikdar and
Amil, Patwari and Mugudam being head for revenue administration
respectively for Subah, Sarkar, Mahal and revenue villages. In order to
augment the land rent and establish a firm demand frequent survey
settlements were made in year 1582,1685,1750 and 1765 (on the acquisition
of Diwani by East India Company). After the advent of East India Company
the first and foremost task of the company was to establish a scientific land
revenue system ensuring a peaceful peasantry, regular flow of revenue and a
loyal aristocratic class serving as a chain between the crown and its subjects.
With this aim in view of permanent settlement of estates having a defined
area and fixed rent was made in March 1793 with the zamindars giving them
the proprietary right over the land. The zamindars (intermediaries or
landlords) were empowered to collect rent from the raiyats in respective
estates and to pay a fixed amount to the Government. For the purpose of
revenue administration, a Board of Revenue was set up as apex body at
provincial level and the province was divided into commissionaires and
districts under the charge of Divisional Commissioners and the Collectors of
revenue. The districts were divided into parganas and Mauzas (revenue
villages). In order to safeguard the interests of raiyats (tenants) against
arbitrary ejections from land and enhancement in rent etc. The Tenancy Acts
were passed in 1885 and 1908 (for Chotanagpur) followed by revised surveys,
cadastral surveys held earlier with scientific measurement of various
categories of land, records of right over the land and identification of raiyats
over a particular plot of land. After independence, abolition of intermediary
rights granted under permanent settlement and agrarian reforms were taken as
a national policy and the Bihar Land reforms Act, 1950 was passed which
came into effect in 1955-1956. As a consequence all intermediary rights were
abolished and the interests of intermediaries and tenure holders in land
including interests in trees, forests, fisheries, jalkars, ferries, hats,
gairmazarua lands, mines and minerals vested in State of Bihar on payment of
due compensation. Thus, there became a direct link between the State and the
tenants, the tillers of the soils and assessment and collection of land revenue
came under the direct control of the State. The last survey and settlement in
the plain area of the State had been conducted during the 1 st decade and in
hilly survey and settlement for whole of the State have been conducted so far.
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 (Authority: Letter No. 15/Cess 08/82 1284 dated ¾-6-1982 at page agreement
76.0/ Land Revenue Manual. The rate of rent on land held by raiyats are the
same which were fixed in the last survey settlement operation conducted
decades ago whereas rates of different cesses viz., road cess, education cess,
health cess and agriculture development cess have been increased from 1 st
April 1978 rent on small holdings upto 3 hectares in Chotanagpur and upto 2
hectares in other area of Bihar was exempted in a separate enactment. The
resultant effect of these developments during recent past in the collection of
land revenue is almost stable.
Legislative background:
1.3 The laws governing the land revenue management in Bihar are as under:-
1) The Bengal Cess Act, 1880 (Road Cess Act) since adopted.
2) The Bihar Tenancy Act, 1885 (VIII of 1885).
3) The Chotanagpur Tenancy Act, 1908.
4) The SanthalParganas Tenancy Act, 1949.
5) The Bihar Land Reforms Act, 1950 and rules made thereunder.
6) The Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of
surplus Land) Act, 1961.
7) The Bihar BhoodanYagna Act, 1954.
8) The Bihar Government Estates (Khas Mahal) Manual, 1953.
9) The Bihar Health Cess Act, 1977
10) The Education Cess Act, 1959.
11) The Agricultural development Cess Act, 1982.
12) The Bihar Land Rent (Exemption from Payment) Act, 1981 effective from
1st April 1978.
13) The Chotanagpur Tenures Act, 1869 (Bengal Act 2 of 1869).
14) The Bihar Orissa Public demand and Recovery Act, 1914.

In addition to aforesaid enactments/Manuals, Bihar and Orissa Registers

and Returns Manual, 1932 and Boards Manuals, 1951 incorporating instructions
issued by Government under the provisions of aforesaid enactments were also
compiled.

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 CHAPTER-2
ORGANISATIONAL SET UP

2.1 The laws governing the land revenue in Bihar are administered by Revenue
and Land Reforms Department of the Government with the Land Reforms
Commissioner/Secretary at the head. All important cases of settlement, framing
of policies, sanction of alienation of Government land (Khas Mahal etc.) are
finally decided at Government level Revenue & Land Reforms. For efficient
administration, the State is divided into Commissionaires and districts
respectively with the Civil Divisional Commissioner and the Collector at the
head who are vested/delegated with powers of specified categories of settlement,
fixation of rent and recommendation of important cases with details. At the
district level, the Collector is assisted by the Additional Collector (Revenue) in
the discharge of his responsibilities in revenue matters. District is further divided
into sub-divisions. Each sub-division is under administrative control of sub-
divisional Officer who is assisted by the revenue Deputy Collector. The main
pivot of the machinery for assessment and collection of land revenue is, however,
the Circle Officer (AnchalAdhikari) who is in charge of a revenue circle under a
sub-division. All cases of settlements of land, sairats, assessments, collection,
remission etc. emanate from the circle office. A revenue circle consists of several
Halkas each consisting of a group of Mauzas (revenue village). At Halka level
the “Karmcharies” / “Panchayat Sewaks” are responsible for collection of
revenue and depositing the same at frequent intervals with the Nazir of the circle
concerned. For co-ordination, monitoring and control over the work of
Karmacharies and Panchayat Sewaks there is a circle officer (AnchalAdhikari).
All initial accounts and records of settlements, assessment, collection, details of
tenancy etc. are maintained and kept in the circle office. The circle officer is,
therefore, the main unit of audit of land revenue. In addition offices of the Deputy
Collector Land Reforms, Additional Collector (Revenue), Civil Divisional
Commissioner, Revenue and Land Reforms Department are also audited at
prescribed intervals.

The organisation set-up of the department at a glance is as shown in the chart

given below:-

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 Land Reforms Commissioner/Secretary

Divisional Commissioners
(One for each Divisions)

Deputy Commissioners/Collectors
(Assisted by Additional Collectors)
(One for each District)

Sub-divisional Officer
(Assisted by Deputy Collector, Land Reforms)

AnchalAdhikari (Circle Officers)

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 CHAPTER-3

Classes of tenants-Procedure of settlement-levy, assessment and

collection of rent, Cess etc.
INTRODUCTORY

Section 4 of the Bihar Tenancy Act, 1885/30-1950 of Bihar Land Reforms

Act and Section 4 of CNT Act, 1908.

3.1 The land revenue system as evolved by the British Government was mainly
zamindari system under permanent settlement. These Zamindars (intermediaries)
were recorded as proprietors and they were empowered to levy and collect rent
from the raiyats (tenants) in the manner prescribed in tenancy laws; Apart from
such settlement, there were certain estates under the direct
possession/management of Government known as Government Estates (Khas
Mahal) which were meant mainly for the use by Government and surplus thereof
(spare), if any, to be settled with individual, institution, society etc. on lease in
accordance with the manner prescribed in the Bihar Estates (Khas Mahal)
Manual. Consequent upon abolition of intermediary rights under Bihar Land
Reforms Act, 1950, all intermediary interests in permanently settled areas vested
in the State, and the management of such area also directly come under the State
Government. The Bihar Land Reforms Act provided that the management of all
estates and tenures vested in the State hall as far as practicable be managed
according to the rules for the time being in force for the management of such
Government estates subject to such directions as may be general or special orders
be issued from time to time by the State Government. The purpose of Bihar Land
Reforms Act has been to levy and collect rent in the vested directly by
Government in accordance with the existing tenancy laws.

CLASSES OF TENANTS

Section 4 of Bihar Tenancy Act, 1885/ Bihar Land Reforms Act, 1950.

3.2 Different classes of tenants under tenancy laws in Bihar are as under:-

Under Bihar Tenancy Act

3.3 Raiyats

Section 5 (2) of Bihar Tenancy Act, 1885-30-1950 of Bihar Land Reforms Act.
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“Raiyat” means primarily a person who has acquired a right to hold land for the
purpose of cultivating it by himself or by the members of his family or by hired
servants or with the aid of partners and includes also the successors in interest of
persons who have acquired such a right.

“Raiyats holding at fixed rates” means ‘Raiyats’ holding either at a rent fixed in
perpetuity or at a rate of rent in fixed perpetuity.

Section 4(3)

Occupancy raiyat means raiyats having a right of occupancy in the land held by
them.

Section 4 (B) (C)

Non-occupancy riayat means not having such a right of occupancy.

Procedure of Settlement

Section 104 A of Bihar Tenancy Act, 1885 and Bihar Land Reforms Act, 1950.

3.4 All land held by occupancy raiyat at a fair and equitable rent may be retained
by such raiyat in perpetuity and he cannot be ejected from his holding except in
the execution of a decree for ejectment passed on the ground that he had used the
land in a manner which renders it unfit for the purpose of tenancy or he has
broken a condition consistent with the tenancy law. In respect of such land State
has little scope for resettlement as it was permanently settled with the occupancy
raiyats having rights of occupancy in perpetuity.

In case of land under Khas Mahal, Gairmazurua Khas land vested in State, land
acquired under Land Acquisition Act etc., the question of settlement of such land
arises. Such settlement may be made by the Government with individuals, any
institution or society for agricultural or commercial purposes at a fair and
equitable rent and salami. If the land in question is settled for agricultural use the
rental being assessed at rates applicable to lands of similar quality and with
similar advantages in the vicinity. The rate of salami should not exceed ten times
of such rental. If, however, settlement is made for non-agricultural purposes the
salami is to be fixed first being equal to current market value of the land in the
vicinity and annual rental will be 1/20th and 1/50th of such salami for commercial
or residential use respectively of such land. Settlement of town Khas Mahal land
is made on the basis of lease subject to renewal and revision at prescribed
periodicity in the lease deed, rent at double the existing annual rental.

Settlement of Sairat
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3.5 Sairats viz. fisheries, makhana, ferry ghats, hats, bazaars etc. are settled
generally for a period of one year, by Government by public auction with the
highest bidders (on the basis of minimum amount equal to reserve jama) or with
co-operative societies at the reserve jama to be fixed on the basis of last three
years average receipts from such sairats with certain appreciation in view of the
present market condition. As decided by the Government in Revenue Department
in April 1974, the management of Hats and Bazars (market places) has been
transferred to the market committee established under the Bihar Agricultural
Produce Market Act, 1960, with the stipulation that 20 per cent of the income of
such committees derived from the market places should be credited to
Government revenue vide letter No. 165-203/76-1478 LR dated 20.6.1976, No.
10-5-2-09/77-525 R dated 26.2.1977 of Estate Khas Mahal Manual Government
of Bihar. In respect of all settlement of sairats an instrument of deed is to be
executed and registered under Indian Registration Act, 1908.

Levy and collection of rent, cess etc.

Section 24 of Bihar Tenancy Act, 1885 and Bihar Land Reforms Act, 1950 and
rules.

3.6 Levy and collection of land revenue is governed by the provisions of Land
Revenue Act, Tenancy Act and rules made there under by the State Government.
All (owners) land to whatever purpose it is applied and wherever it is satiated is
liable to payment of rent to the State Government at the rate fixed at the time of
settlement or specified in the deed except such land as have been wholly
exempted from such liability by special grant of or contract with the State
Government or by the provisions of any law for the time being in force. In
addition to the rent, road cess, education cess, health cess and agriculture
development cess at the prescribed rates on the annual rent of the land are also
payable by all the raiyats under separate enactments for this purpose. These
cesses are payable even in respect of the land on which payment of rent is
exempted under the Bihar Land Rent (Exemption from payment) Act, 1981.
Collection

3.7 Prior to abolition of intermediary rights rent payable by a tenant was to be

paid in four instalments falling due on the last day of each quarter of the
agricultural year (commencing from 1st day of April each year with effect from
1955). In effect all the rents falling due at the end of a year and are to be
collected from a tenant by the end of each financial year by karmchari/Panchayat
Sewak and a rent receipt in prescribed form is to be granted to the tenant in token
of such payments.
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Arrear if dues

3.8 Arrears of rent, cess and other dues of land revenue are recoverable by issue
of certificates by the collector under Bihar & Orissa of rent in khasMahals,
interest is, however, chargeable on demands under Section 17(a) of the P.D.R.
Act, 1914 from the date of signing the certificate up to the date of realization. A
simple interest at the rate of 12 per cent per annum is chargeable on arrears of
road cess from the date it becomes due for payment. There is no provision for
charging interest on arrears of other cesses.

Accountal of rent, cess etc.

3.9 Every tenant who pays rent is granted a rent receipt by the collecting agent
(karmachari or panchayat sewak) who enters receipt wise each collection in a
Register-III AA. The collection made by the Karmachari/panchayat sewak during
a week or for any other prescribed period is deposited with the AnchalNazir who
grants Nazir’s receipt in respect of each such deposit. On receipt of collected
amount in the circle, each receipt of the Nazir Receipt Book is entered in the
receipt side of the cash book of the circle (Anchal) and the total collection of the
circle as a whole is remitted into treasury through challans at frequent intervals
and credited into appropriate heads of accounts (as detailed in Chapter).

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 CHAPTER-4

Survey Settlement, remission, suspension of rent and alienation of

Government lands

Settlement of Land Revenue

Under section 104 of Bihar Tenancy Act, 1885 and Bihar Land Reforms Act &
Rules, 1950.

4.1 Land rates are fixed by Revenue Officers at the time of settlement of land.
These rates vary not only from district to district but also from village to village
depending on the quality of soil and the average local prices of stable food crops
during the currency of the present rent.

Survey operation

Section 101 of Bihar Tenancy Act, 1885 and Bihar Land Reforms Act and Rules,
1950.

4.2 Settlement of land revenue is preceded by a survey operation during which

plans of village lands are prepared showing accurately the position, shape and
size of all fields, village sites, streams, limits of jungle and all other items of the
areas under survey operation. The State Government may, in any case it thinks
fit, make an order directing that a survey be made and records of rights be
prepared by Revenue Officer in respect of the lands in any local area of tenure or
part thereof.

When a draft record of right has been prepared, the Revenue Officer shall
publish the draft in the prescribed manner and for the prescribed period.

Settlement of rents and preparation of Rent Roll

Section 104 A 1 and 2 of Bihar Tenancy Act, 1885 and Bihar Land Reforms Act
and Rules, 1950.

4.3 In every case in which a settlement of land revenue is being or is about to

be made the Revenue Officer after publication of the draft of the records of rights
(a) Settles fair and equitable rent for tenants of every class, (b) settle a fair and
equitable rent for any land in respect of which he has recorded that the occupant
is not entitled to hold it without payment of rent, and (c) prepares a settlement
rent roll. The Settlement Rent-Roll shall show the name of each landlord and of
each tenant whose rent has been settled and the amount of each such tenant’s rent
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payable for the area shown against his name. The Revenue Officer shall submit
the Settlement Rent-Roll to; the confirming authority and after sanction by the
conforming authority the Revenue Officer shall finally the Settlement Rent-Roll
and shall incorporate it with the records-of-rights published in draft.

Remission and suspension of rents of certain holdings

Section 112(c) of B.T. Act, 1885 and Rule 92 of Bihar Govt. Estate Khas Mahal
Manual, 1953.

4.4 The Collector may order the partial of total remission of the rent of an
occupancy holding, for such period as he considers reasonable under the
circumstance, where the soil of a portion or the whole of such holding has,
without the fault of the raiyat, become temporarily or permanently deteriorated
by a deposit of sand, by submersion under water or by any other specific cause,
sudden or gradual. Such remission or suspension of the demand of land revenue
upto a specified limit may be ordered on the occasion of widespread calamities as
contained in Chapter-II Section XX of the Tauzi Manual. Above the specified
limit such sanction may be made by the Commissioner, State Government.

Procedure of sanction of remission and communication thereof

4.5 On receipt of the sub-divisional officers recommendations for remission

and suspension of demands in regard to the list of defaulters (as mentioned in
Chapter-8) (Return-III) the Collector will pass suitable orders thereon. The
remission thus sanctioned should be entered in the district Remission Register-VI
and a copy of the order sanctioning each remissions or suspensions should be
sent to the sub-divisional officer for necessary action.

When the Collectors orders sanctioning the remissions or suspensions are

received in the sub-division, necessary entry regarding remissions should be
made in the sub-divisional Remission Register-VI in the same form and a copy of
the order sent to the AnchalAdhikari for necessary action regarding effecting the
remissions etc. under paragraph 11 of the “Instructions for the Guidance of the
circle officers in Government Estates”. The AnchalAdhikari in his turn is
required to make an entry in the Remission Register-VI maintained in his office
and copy of the entry is sent to the Karmachariconcered together with an ‘Advice
List’ which is to be returned by the Karmachari with an endorsement
acknowledging receipt of the copy of the entry in question and certifying that he
kept in a separate guard file. In Annual return No. I the Total remissions
sanctioned by various should be shown separately.

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Alienation of Government Lands

4.6 Alienation of Government land means the transfer of Government land

(Khas Mahal, vested Gairmazura land and land acquired under Acquisation Act
for allotment to industries, etc.) whether by private sale, lease or otherwise to
public bodies, association or individual. No authority subordinate to State
Government is empowered to sanction such alienation, proposal for such
alienation is initiated and processed at the district level and forwarded to
Government through Divisional Commissioner with a check slip clearly
specifying the object and terms of transfer with details of area, market value and
estimated annual rental of the land in order to facilitate, the State Government to
fix the agricultural and commercial rent as the case may be. On Sanction of such
alienation or transfer a formal deed of lease is executed with the transferee and
land is thereby transferred for a specified period at a fixed annual rental.

Exemption of rent under Bihar Land Rent (exemption from payment) Act,
1981

4.7 By an ordinance issued in 1978 (since enacted in 1981), Government

exempted from levy of land rent with effect from 1st April 1978, small holdings
upto 3 hectares in the districts of Ranchi, Palamu, Singhbhum, Hazaribag,
Giridih, Dhanbad and SanthalParganas and up to 2 hectares in all other districts.
The ordinance/enactment envisages the detailed procedure of identification of
raiyats to decide eligibility for this exemption. As per the ordinance, such
holdings are not exempted from levy of various cesses like road cess, education
cess, health cess and agriculture development cess leviable under the relevant
cess Act.

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 CHAPTER-5

Miscellaneous Provision

Bhoodan Land

5.1 The Bihar BhoodanYagna Act, 1954 (Bihar Act XXII of 1954) was passed
with a view to facilitating the donation of land connection with the
BhoodanYagna and to provide for settlement of such lands with landless persons
or with a village community, Gram Panchayat of with a Co-operative Society
Organised by the BhoodanYagna Committee.

The Act inter alia envisaged that the right, title and interest of the donor in
any land donated under BhoodanYagna vests in the BhoodanYagna committee
for the purposes of BhoodanYagna only on confirmation of the
BhoodanYagnaDanpatras (gift deeds) by the State Revenue Authorities and the
committee has the power to grant land, which have vested in the committee, to
landless persons or a village community, Gram Panchayat of a co-operative
society.

The principles laid down by the State Government for realization of rent in
respect of lands donated to the committee and distributed among the Bhoodan
tenants are:

(a) Rent for the land donated is payable by donors upto the date of donation.
(b) Rent for lands donated in BhoodanYagna should be paid by the donors
themselves during the period between the date of donation and that on
which the possession thereof is delivered by them to the landless persons
to whom those are granted by the Bihar BhoodanYagna Committee, in
case in which the lands were in cultivating possession of the donors and
they have enjoyed the usufruct there from.
(c) If after making the donation, the donor had relinquished possession of the
land the question of rent for the period between the date of donation and
the of induction of Bhoodan tenants thereon, in respect of such lands
should be referred to the Government for decision.
(d) Rent in respect of the land already under cultivation is to be paid by the
Bhoodan tenants from the date of distribution of such lands.
(e) In respect of waste lands. Brought to cultivation by Bhoodan tenants, rent
is payable by him from such time crops begin to grow thereon.

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Land acquired under Ceiling Act

5.2 Section 4 of the Bihar Land Reform (fixation of ceiling area and
Acquisition of surplus Land) Act. 1961 which came into force on 19th April 1962,
was enacted with the object of securing more equitable distribution of
agricultural land in the State. Under the Act, as amended, no family (which term
includes any company, institution, trust, association or body of individuals,
incorporated or not) shall hold land in excess of the ceiling fixed ranging from 15
acres (6.0705 hectares) to 45 acres (18.211 hectares) depending on irrigational
facilities and productivity of land. For this purpose, all types of land in the State
were classified into six groups (class I to VI), the first three groups (class I to III)
covering irrigated land and the last there groups (class IV to VI) covering land
without any irrigational facilities including orchard, horticultural, hilly or sandy
land etc. (derails in section-4 of the Act).

Any land in excess of the specified ceiling is compulsorily acquired by the

Government by Gazette notification on payment of compensation and distributed
among the eligible categories of people in accordance with the procedure
prescribed in the Act.

5.3Land Acquisition

Land Acquisition is the process by which the Government acquires private land
for purposes such as development of industry, infrastructural facilities and
urbanisation, and provides compensation to the affected land owners with
rehabilitation and resettlement. The Land Acquisition process in India was
guided by the “Land Acquisition (LA) Act, 1894” as amended from time to time
and after its repeal, with effect from 01/01/2014, by the “Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement (RFCTLARR) Act, 2013” and the “Bihar Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement (BRFCTLARR) Rules, 2014”.

Requisition of land
According to Rule 3 of BRFCTLARR Rules 2014 the following documents are
required to be enclosed with Requisition of land acquisition. Requisition in Form
I, Detailed Project Report, .Sanction letter/Administrative approval of the project,
Estimated Cost/Budget provision of the project, Map of effected area in 3 copies,
certified copy of Khatiyan of effected area, Category of land and any other
document required by Collector.

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Feasibility Report on requisition
On receipt of the requisition, the Collector shall constitute a team of revenue and
agriculture officers to visit the spot and enquiry whether the requisition is
consistent with the provisions. The team shall make field visit with the requiring
body, examine the revenue records meet the families likely to be affected and
submit a report to the Collector regarding the requisition being consistent or
contrary to the provisions.

If the collector is satisfied that the requisitioned land can be acquired, he shall
calculate the estimated cost of acquisition and other charges and demands from
the requiring Body for deposit the same. After deposit of the estimated cost of
acquisition the appropriate government shall proceed with the acquisition in
accordance with the Act and Rules

Social Impact Assessment (SIA) Study

Notification of SIA study will be issued by the Collector and the study would be
completed within the six months from the notification.

Multi-Disciplinary Expert Group (SIA)

The expert group submit their report with logical comment to the Collector
within two months from the date of constitution of the group.

Publication of preliminary notification and declaration

Section 11 of the RFCTLARR Act, 2013 provides that a notification to that effect
along with details of the land to be acquired shall be published. Under Section 15
of the Act ibid, any person interested may object to the area, justification for
public purpose and findings of social impact assessment report within sixty days
of publication of notification. After issuing the notification, the Collector shall
undertake and complete the exercise of updating land records within a period of
two months as specified here as under –
1. Delete the entries of dead persons;
2. Enter the names of the legal heirs of the deceased persons;
3. Take effect of the registered transactions of the rights in land such as sale, gift,
partition etc,
4. Make all entries of the mortgage in the land records;
5. Delete the entries of mortgage in case the lending agency issues letter towards
full payment of loans taken;
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6. Make necessary entries in respect of all prevalent forest laws; Government
land; assets in the land like trees, wells etc., share croppers in the land; crops
grown or sown and the area of such crops;
7. Any other entries or updation in respect of land acquisition, rehabilitation and
resettlement.

Role of Rehabilitation and Resettlement Administrator or Commissioner

After publication of Notification the Administrator shall gather the information
related to the families eligible for rehabilitation and resettlement within three
months and the information would be certified from the door to door consultation
with affected families.

Committee for collection/ Certification of information in urgency cases

A committee (revenue village wise) will be constituted by the Collector for
collection and certification of information in pursuance of provisions and
procedure. The committee consist a representative of concerned panchayat where
the land would be acquired, a representative from requiring body and a revenue
officer from concerned Anchal. The committee will be headed by Administrator
of Rehabilitation and Resettlement. After publication of approved scheme for
Rehabilitation and Resettlement at local level the declaration of acquisition of
land would be made.
Publication of declaration for acquisition

Section 19 of the RFCTLARR Act, 2013 provides that the appropriate

government will publish declaration with brief of rehabilitation and resettlement
scheme. No such declaration shall be made unless the requiring body has
deposited an amount in full towards the cost of acquisition of the land.

Determination of compensation
Section 26 of the RFCTLARR Act, 2013 provides the manner for determination
of market value of land and section 27 and 28 of the Act ibid provide the manner
of assessment of value of assets and other losses. Further, the compensation shall
be calculated under section 26 to section 30 read with the First Schedule of the
Act ibid.

Approval of rate of land to be acquired

Section 26 of RFCTLARR Act 2013 provides that

(1) The Collector shall adopt the following criteria in assessing and
determining the market value of the land, namely:-
19
(a) The market value, if any specified in the Indian Stamp Act, 1899(2 of
1899) for the registration of sale deeds or agreements to sell, as the case may be,
in the area, where the land is situated or

(b) The average sale price for similar type of land situated in the nearest
village or nearest vicinity area; or

(c) Consented amount of compensation as agreed u[pon under sub-section (2)

of Section 2 in case of acquisition of lands for private companies or for public
private partnership projects, whichever is higher.

Section 27 of RFCTLARR Act 2013 provides that the Collector having

determined the market value of the land to be acquired shall calculate the total
amount of compensation to be paid to the land owner (whose land has been
acquired) by including all assets attached to the land.

Section 30 (1) of RFCTLARR Act, 2013 provides that the Collector having
determined the total compensation to be paid, shall, to arrive at the final award,
impose a “Solatium” amount equivalent to one hundred per cent of the
compensation amount.

(2) The Collector shall issue individual awards detailing the particulars of
compensation payable and the details of payment of the compensation as
specified in the First Schedule.

(3) In addition to the market value of the land provided under Section 26, the
Collector shall, in every case, award an amount calculated at the rate of twelve
per cent, per annum on such market value for the period commencing on and
from the date of the publication of the notification of the Social Impact
Assessment sturdy under sub-section (2) of Section 4, in respect of such land till
the date of the award of the Collector or the date of taking possession of the land,
whichever is earlier.

Valuation of things attached to the land

Section 29 of Act provides the manner of determination of value of things
attached to land (building, trees, plants, crops etc) and other immovable property
or assets attached to the land or building which are to be acquired, use the
services of a competent specialist in the relevant field, as may be considered
necessary by him.

20
Acquisition under Urgency Provisions

Section 40 of the RFCTLARR Act, 2013 provides that in case of urgency the
Government shall communicate the fact to the Collector. The Collector thereafter
shall proceed with the acquisition in accordance with the Act and these Rules.
Further, section 9 of the Act ibid exempts from social impact assessment study,
where land is proposed to be acquired invoking the urgency provisions.

Land acquisition awards and compensation

Section 23 and 25 of RFCTLARR Act, 2013 provide that the Collector shall
proceed to enquire into the objections and shall make an award within a period of
12 months from the date of publication of the declaration under section 19 of the
Act ibid.
Provided that the appropriate Government shall have to power to extend the
period of twelve months if in its opinion, circumstances exist justifying the same.

Rehabilitation & Resettlement Award

Section 31 of Act provides that the Collector shall pass Rehabilitation and
Resettlement Award for each affected family in terms of entitlements provided in
the Second Schedule. Section 32 of Act provides that in every resettlement area
as defined under this Act, the Collector shall ensure the provision of all
infrastructural facilities and basic minimum amenities specified in the Third
Schedule.

Possession of Land

Section 38 of RFCTLARR Act, 2013 provides that the Collector shall take
possession of land after ensuring that full payment of compensation as well as
rehabilitation and resettlement entitlement are paid or tendered to the entitled
persons within the period of three months for the compensation and a period of
six months for the monitoring part of rehabilitation and resettlement entitlements
listed in the second schedule commencing from the date of the award made under
section 30.
In the land acquisition cases under emergency provision, after 30 days of
declaration and serving the notice to land owners, the possession of land may be
given to requiring body on payment of eighty per cent of compensation of
tentative amount of compensation to land owners.

All provisions of rehabilitation and resettlement are applicable to affected

families of land acquisition under emergency provisions. There is only exemption
from SIA study.

21
 Other important issues of valuation of compensation

Action under RFCTLARR Act 2013 in the cases initiated under LA Act 1894

Section 24(1)(a) of RFCTLARR Act, 2013 and circulars/instructions issued by

the Department provide that in cases where land acquisition was initiated under
the LA Act, 1894 but award could not be made till December 2013, then
compensation value shall be determined as per the provisions of the Act, 2013 by
considering the market value of the land applicable as on 1 January 2014.

Section 24(2) of RFCTLARR Act, 2013 and circulars/instructions issued by the

Department provide that in the cases where land acquisition was initiated under
the LA Act, 1894 where an award under the said section 11 has been made five
years or more prior to the commencement of this Act but the physical possession
of the land has not been taken or the compensation has not been paid the said
proceedings shall be deemed to have lapsed and the appropriate Government, if it
so chooses shall initiate the proceedings of such land acquisition afresh in
accordance with provisions of the Act:

Provided that where an award has been made and compensation in respect of a
majority of land holdings has not been deposited in the account of the
beneficiaries, then, all beneficiaries specified in the notification for acquisition
under section 4 of the said Land Acquisition Act, shall be entitled to
compensation in accordance with the provisions of this Act.

Additional Compensation under Emergency Provision

The RFCTLARR Act 2013 stipulates that in case of land acquisition initiated
under the LA Act, 1894 but award not made till December 2013, then
compensation value shall be determined as per the provisions of the Act, 2013.
The Act ibid further stipulates for payment of additional compensation at the rate
of 75 per cent of the total compensation value of land and assets acquired under
emergency provision.

Provided that no additional compensation will be required to be paid in case the

project is one that affects the sovereignty and integrity of India, the security and
strategic interest of the State or relations with foreign States.

Interest

The LA Act, 1894 and the RFCTLARR Act, 2013, provide that in case the
compensation is not paid or deposited on or before taking possession of the land,
the Collector shall pay the amount with interest at the prescribed rates Nineper
22
cent per annum if the amount of compensation is paid within one year and
thereafter at the rate of 15 per cent.from the time of taking possession till it has
been so paid or deposited.

Establishment Charge

The BRFCTLARR Rules, 2014 (Rules, 2014) provides for collection of

establishment charge at the prescribed rates in four slabs. The rate of
establishment charge 20 per cent, 25 per cent, 30 per cent and 35 per cent from
the land requiring body and to deposit it in Government Account under land
revenue head.

Contingency Charge

As per BRFCTLARR Rules, 2014 the maximum ceiling of contingency charge

was enhanced to `5,00,000. The Collector and the Concerned DLAO shall keep
this amount in a Nationalised Bank in a Saving Bank Account and it shall be of a
joint account in name of both the aforesaid officers. The amount shall be
disbursed jointly for the purpose of rehabilitation survey, monitoring, stationary
and other Contingent expenses like vehicle and outsourcing of computer,
computer operator, amin, draftsman, chainman etc. The interest earned on this
account may also be utilised for the above purposes.

Rent & Cess

Section 22 & 23 of Bihar Land Reforms Act, 1950 followed by Government

Notifications issued from time to time and also of the Government letter No.
15/Accounts-10/2000 415/Rev dated 16 June 2000 issued by the Revenue and
Land Reforms Department, Bihar provide for realisation of Road Cess, Education
Cess, Health Cess and Agriculture Cess at the rate of 25, 50, 50 and 20per cent
respectively, on the amount of rent for the lands. Exemption from levy of Cesses
on the amount of rent is not permissible whereas exemption from collection of
rent for specific reasons may be allowed by the Government on certain
conditions.

Preparation of Estimate

Components of Estimate are as given below:

Area and type of land, rate of land, Multiplication factor, Value of land, value of
things attached with land, additional compensation (12 per cent), interest,
additional compensation (75 per cent), establishment charge, contingency charge,
Rent & Cess etc.
23
Approval of market value of land and sanction of Estimates

Rule 31 of BRFCTLARR 2014 delegate the power of finalisation of market value

of land and sanction of estimates are as given below:

Collector Divisional At government

Commissioner level
Market value of Upto Rs.5 Crore Above Rs.5 Crore Above Rs. 15
land to Rs. 15 Crore Crore
Sanction of Upto Rs.10 Crore Above Rs. 10 Above Rs. 25
Estimate and Crore to Rs.25 Crore
declaration of Crore
Award

24
 CHAPTER-6

Principles and Procedures of Audit

Main Principles of Audit

6.1 The general principles governing the audit of receipts as laid down in
chapter 4 of Section II of the Comptroller and Auditor General’s Manual of
Standing Orders (Technical) Vol.- are to be followed mutatics mutandis in
conducting the audit of land revenue. Usually the audit is confined to
examination of cases in respect of which the assessments are completed. It should
be our endeavour in audit of land revenue to ensure that all demands due are
properly and promptly raised and realised in accordance with the law, rules and
regulations governing the same and to trace all receipts right from the source to
their final accounting in Government’s books.

Audit cannot confine itself only to the checking of the arithmetical

accuracy of the assessment. It should be seen that provisions of the Constitution
and the laws governing the receipts are not violated by the executives. In the
course of discharge of constitutional obligation, audit will have access to the
assessment records with all its connecting documents. But audit should observe
the same secrecy as regards such documents as is expected of the officer of the
department.

It is not the duty of audit to question an authoritative interpretation of rules

and orders governing the receipts or judicial decisions on any point.

Ordinarily, audit will see that the internal procedure adequately secures
correct and regular accounting of demands, collection and refunds. To sum up
audit, should see that the internal procedure adequately provides for and actually
secures:-

(1) The collection and utilization of data necessary for the computation of the
demand or refunds under the law;
(2) The prompt raising of demands;
(3) The regular accounting of demands, collections and refunds;
(4) The correct accounting and allocation of collections and their credit to the
Consolidated Fund of the State;
(5) That proper safeguards exist to ensure that there is no wilful omission or
negligence of levy, or collect taxes;

That double or fraudulent refunds of other losses of revenue are promptly

brought to light and are investigated;
25
EXTENT OF AUDIT

6.2(1) One or two Karmcharis accounts under each revenue circle (Anchal)
may be selected for test check and their records should be requisitioned for the
purpose [produced to audit] at the circle office.

(2) Detailed test check of a few individual cases with reference to the demand,
collection and balance register receipts in support of the money realised index
register etc. may be made.

(3) General review of the Karmcharis cash book, Anchal Cash book with detail
check for one selected month for each year with reference to the receipts treasury
challans may be conducted. This will include verification of remittances into
treasury with treasury records.

(4) Hundred per cent check of commutation or remission of rent.

(5) General examination of demand, collection and balance register

miscellaneous demand register, sairat settlement cases. Index register and ther
statutory and non-statutory records, registers and returns.

(6) Verification of 2 per cent of the Challans for which credit has been given in
the assessment records, to be test checked.

(7) In addition to the existing checks of refunds, 5 per cent of refund vouchers
received from headquarters sections to be checked in local audit.

Procedure and Programming

6.3 (a) The audit of the revenue receipts under the land revenue will be done bio-
annually in the course of the year following the last two financial years.

(b) A local audit party should consist of 2 Section Officers/Assistant Audit

Officers and one Senior Auditor/Auditor, all trained in land revenue receipts,
with 50 per cent supervision by the Audit Officer.

(c) Duration of audit for each circle office including one or two Karmcharis is 6
party days, for district office duration of audit is, however, 2 party days.

(d) The devolution of duties amongst party members will be in accordance with
the C&AG’s circular No. 6 of 1984(XX).

Programme of Local Audit

26
6.4 The programme of local audit of land revenue department should be drawn
sufficiently in advance at least one month before the local audit, by headquarters
section of audit office and an intimation to that effect should be sent to the
officer-in-charge of the Land revenue Office to be audited at least two weeks in
advance so as to enable him to keep all records ready for production to audit.
In course of audit any point worth mentioning should be written in a
precise and clear manner in polite language in the form of objection statement
leaving sufficient space in the margin for written comments of the officer-in-
charge of the office and such objection statement should be forwarded to him for
verification and comments. The objection statement issued in course of Audit
should be got back with reply on the same day or on the following day. In no case
they should be allowed to remain with the local office beyond 3 days from the
date of issue or the date of close of audit, whichever is earlier. On receipt of
objection statements with reply the draft inspection should be written in course of
audit so as to ensure discussion of the draft inspection report with the head of the
office on the closing date of audit.

27
 CHAPTER-7

AUDIT CHECKS AND DRAFTING OF INSPECTION REPORT

7.1 The main object of audit of receipts from land revenue is to see that
all holding are correctly assessed, noted in the zamabandi on continuous
Khatian Register and the amount due from the holders/ tenants are collected
and deposited in the treasury promptly. For this purp se the records
maintained in the following offices are to be audited:-
1. Circle officer/ AnchalAdhikari’s office including records of Halka.
2. land Reforms Diputy Collector’s Office at sub-divisional level.
3. Additional Collector’s office (Revenue Section) at district headquarters
including land records/ Survey office.

Circle Office/ AnchalAdhikari’s office records

7.2 In land revenue audit, complete link of all the document right from
the Halka to records maintained at circle offices should be traced and
examined. Information as to records seen and records not produced to audit
should be incorporated in the report itself, vide CAG’s letter No.221-Rev-A-
IV-77-78 dated the 13th August 1973.

Scrutiny of Assessment

7.3 Audit should verify if the demands against various tenure holders
are correctly shown in the Tenants Ledger (Register-II) in accordance with the
rate noted in the Khatian/ Rent Roll or Zamabandi/ Register IB (continuous
Khatian) known as Laggith in common parlance and are transferredin the
combined Demand and Collection Register of the Anchal. The entries in the
register are verified and attested by the AnchalAdhikari under his dated
initials in the appropriate column. It should be seen that the demands as
affected by abatement or reduction of rent or by any course e. g. new
settlements, vesting of new interests etc. in Government are verified by
reference to original orders and the “Index Register of alteration of Demand”
Statement of surplus ceiling land, Bhoodan land, gairmazaruakhas land etc.
should be scrutinized on audit to see that there is no loss of land revenue to
Government. Audit should also examine the tenant’s ledger along with the
28
Khatian to see that acquisition of land have been assessed on agricultural
holdings concerted by the holders for commercial use in terms of rule laid
down in the Bihar Government Estates (Khas Mahal) Manual. While verifying
the correctness at the prescribed rates on all holding including those which
have been exempted from payment of land rent under separate orders,
enactments for that purpose.

7.4 Verification of Collection: Audit checks

(i) Whether the correct amount as per jamabandhi etc. against a particular
tenant has been realised from him;
(ii) Whether all direct payments made to Karamchari have been entered in
Register III-A and the entries with reference to the counterfoils of rent
receipts have been made correctly;
(iii) Whether the Abstract of Daily Collections (direct payment to
Karamchari) has been correctly brought forward from Register III-A
register III-AA;
(iv) Whether all the amounts collected by the Karamchari have been
deposited with AnchalNazir and Nazir receipt number and date noted
against the deposits shown in Register-III-A.A; It should also be seen
that as soon as the amount of collection exceeds Rs. 1,000 it is
invariably deposited with the AnchalNazir and that the total collection
as exhibited in Nazir Receipt Books and entered in Anchal Cash book
has been remitted to the treasury/sub-treasury without delay;
(v) That monthly and yearly verification of collections have been done with
reference to primary registers with the challan register of remittances at
the Anchal level and the AnchalAdhikari (Circle officer) has given
certificate at the foot of return-I or Return-II, as the case may be, to that
effect and any discrepancy noticed by the AnchalAdhikari has been
indicated in an explanatory note. After exercising audit scrutiny on
these internal verifications of collections and remittance thereof into the
treasury audit party should verify that these remittance tally with entries
in treasury records and with those in bank scrolls.
(vi) That Rent Receipt Books received by the Anchal Office either direct
from the Superintendent, Printing and Stationaries or form the district
officers, have been duly accounted for in the stock register of Rent
Receipt books and their issue to the Karamcharis duly recorded. It
should also be ensured that the folios and counterfoils of rent receipt
books have been properly checked before issue and ceritificate to that
29
 effect endorsed on each receipt book and that blank pages of partly used
receipt books are marked cancelled with rubber stamp and are returned
after the close of the year along with any unused receipt books.
(vii) That the stock account of Nazir Receipt books has been properly
maintained and that all books issued to Nazir and used during the
period under audit have been taken into account in the Anchal cash
book.
(viii) That all cases of remission as per register of remission of land revenue
(Register-IV) are fully covered by the orders of competent authority.
(ix) That the periodical returns (Return-I, II etc.) are properly maintained
and submitted regularly by the Anchal to the sub-divisional/District
offices. Audit should also verify through test check the correctness of
such returns (test checked).

Audit checks of Sairat Settlement Cases

7.5 Receipts from sairat constitute important part of total land revenue.
Audit should, therefore, scrutinize the sairat settlement cases and collections
therefrom very carefully. It should be seen in audit that all sairatrs viz.,
Jalkars, falkars, hat, bazaars etc. as detailed in Sairat register, have been
settled and reserve jama in each case was fixed as per the prescribed hours. In
case of any sairat remaining unsettled, audit should see the reason thereof and
it should be seen whether action for declaring such sairat as; Parta’ has been
initiated at proper level and finalized under orders of proper authority. It
should also be seen that the settlement of sairat has been approved by the
competent authority and in case of such sairats exceeding Rs. 100, deeds of
such settlement were executed and registered. The Collection of sairat dues
and arrears, if any, should also be seen in audit. In case of Hats and bazaars
transferred to agriculture produce marketing Board audit should see whether
20 per cent of receipts from such hats and bazaars have been credited to
Government account each year.

General:

7.6 (a) The following further points should also be seen in audit:-
(Section 45 of Cess Act, 1880).
(i) That interest on belated payment of road cess at 12 per cent per
annum from the date it became due to the date of actual payment of
road cess has been levied;
(ii) That any loss due to non-settlement or delay in settlement of
gairmazurakhas land, lands acquired under Land Ceiling Act,

30
 Bhoodan lands and road side land, may be examined in audit and
quantitied;
(iii) the action for vacation of encroachment on public land or
regularization thereof by settlement has been taken; and also that
realisation of rent/cess and on account of damages caused, if any, has
been made;
(iv) that action for renewal of leases in respect of Government land, if
any, has been initiated; and
(v) Any case of refund of revenue to be examined in audit in order to
see that refund orders have been made properly.

Audit checks on HalkaKaramachari/ Panchayat Sewak’s accounts

7.7 Account records of one or two HalkaKarmchari/ Panchayat Sewak should

also be scrutinised to see that all the used receipts books with counterfoils of
receipts are returned in Anchal Office and the amounts shown as received in the
counterfoil have noted in Register-III A and III AA and deposited with
AnchalNazir in time. All such deposits are to be verified with receipts granted
by the AnchalNazirs.

Land Reforms Deputy (Sub-divisional level)

7.8 (a) A combined Demand and Collection Register for the sub-division is
maintained Anchal wise in the office of the Land Reforms Deputy Collector
(L.R.D.C.) of the sub-division in the same form and in the same manner as in the
Anchal Office. The entries in the register are to be regularly verified with the
treasury records so as to ensure that the collections have properly been credited in
Government account and progress of collection is satisfactory. Audit should
scrutinize the position of arrears of land revenue and satisfy itself that proper
action has been taken for their recovery. It should also satisfy itself that on
receipt of Return-I from Anchal Officer the figures shown therein have been
verified with the figures shown in the treasury accountant’s/ sub-treasury
accountant’s register and a certificate endorsed thereon to the correctness of such
figures.
(b) Audit is to examine that on receipt of Return-III in the Sub-division the sub-
division officer after such enquiry, as may be necessary, passed orders for filing
certificates in suitable cases and cases of arrears fit for remission of suspension
after being duly verified are recommended to the Collector for action.
(c) Audit should also see that all revenue cases having financial involvement
have been disposed of early so that there may not be any financial loss to
Government for the delay. Audit should be careful in commenting in sub-judice
cases. However in case of inordinate delay involving heavy amount of revenue
caused by non-pursuance of cases by the department diligently audit may offer
comment.

31
BhoodanDanpatras

7.9 Audit should see that confirmation of BhoodanYagnaDanpatras have been

disposed of early so that the Government may not be put to loss due to such
delays. The Bhoodan act envisages that if after making donation, the donor had
relinquished possession of the land and the question of realization of rent for the
period between the date of donation and the date of induction of Bhoodan tenants
thereon arises, it should be referred to Government for decision. It is also
envisaged in the Act that in respect of waste lands brought under cultivation by
Bhoodan tenants, rent is payable by him from such time that crops being to grow
therein.

Audit should also see that any person who has been granted Bhoodan land
has been recorded as Bhoodan tenant in the Rent-Roll of the Anchal. The Rent-
Roll for this purpose will inter alia include the area and description of land, the
amount of rent fixed by the Revenue Officer etc. In this connection it is to be
seen in audit that generally the allottees of Bhoodan land would be exempted
from payment of rent in terms of provisions of the Bihar Land Rent (Exemption
from Payment) Act, 1981; but there is no exemption from payment or cesses
there in. In the L.R.D.Cs. office at the sub-divisional headquarters audit is to
examine the remissions and suspensions of rent, cess and miscellaneous demands
in order to see that the orders for remission of rent, cess and miscellaneous
demands conform to Rule 6, /section XVIII, Chapter II of Tauzi Manual, 1951,
read with rule 92 (b) of the Bihar Estate Manual, 1953.

Additional Collector’s office (Revenue Section)

7.10 In the matter of assessment and collection of land revenue, monitoring

control and coordination function for the district as a whole is discharged by this
office. The figures of demand, collection and balance for the whole district (sub-
division and revenue circle wise) are available in this office. Audit should
scrutinize the position of arrears of land revenue and satisfy itself that proper
action has been taken for their recovery.
Audit should also see that on receipt of Return-I from the sub-divisions,
the revenue section (Addl. Collector’s Office) verifies the collection figures
shown therein with the figures in the treasury accounts. Audit should also satisfy
itself that Return-III (Arrear list) is received at district headquarters in due time
and orders of the Collector on the arrear (Return-III) are, after check, obtained in
respect of each item of proposed remission or suspension. It should also see that
certificates issue in all cases in which certificate proceedings are required to be
taken for realization of arrears. Progress of collections should also attract
attention of audit.

32
 As regards remission and suspension of rent, cess, miscellaneous demands,
granted, if any, audit should see that in respect of widespread calamities the
requirements under Chapter-II, Section XX of the Tauzi Manual, 1951 and rule
92 of Bihar Government Estate (Khas Mahal) Manual have been fulfilled.
Audit should also conduct a review on the lists of Government estates kept
in the district office and see whether it has been periodically revised or not. In
case any estate or area under Khas Mahal is fit for leasing out to individual,
institution etc. it should be seen that action for settelement on lease has been
taken (or not) and in case of leases already granted, if renewal thereby became
due, whether action for renewal has been taken or not. In case of any settlement
by lease sanctioned by the Government and communicated to the district office
audit should see that deed of lease has been executed and registered.

Audit of Land Records Office

7.11 It should be seen that survey has not become overdue unless postponed by
law. Audit may generally examine the basis on which land is classified under
different categories and see that due regard has been paid to the factors specified
in the Act and other circulars issued by Government for fixing the standard rates
of rent. Comment from this angle should be made sparingly and only after careful
consideration by an officer of rank not below that of Deputy Accountant General.
(Authority: CAG’s circular No. 3 of 1973, letter No.1320-Rev.4/8-73 dated
5.3.1973).

A general review of the returns received from circle officer e.g. area
statement, list of vested estates with history, list of old Government estates with
history, statement of distribution of surplus ceiling lands and Bhoodan lands,
should also be conducted in audit to see that they do not depict a misleading fact
leading to financial loss to Government.

Drafting of Inspection Report

7.12 Results of audit of land revenue like other local audit should be set forth in
the form of Inspection Report in the following from-

Part-I (a) Introductory

(b) Outstanding objection from previous Inspection Reports.
(c) Schedule of persistent irregularities.
Part II- Section A- The paras under this section should consist of major
irregularities which are likely to materialize as draft paras for the Audit Report.
The Comptroller and Auditor General of India has prescribed a monetary limit of
objection of Rectified spirit. ₹ 30,000 from 1990-91 for a para to be included in
the Audit. (Authority: CAG’s circular No. 17 of 1991 letter No. 761-Rec.
AIV/10(ii)/91 dated 31.7.1991).

33
Section B- The paras this section consist of irregularities which though not major
are to be brought to the notice of higher authorities.

Part-III- Test Audit Note containing major irregularities to which should be

attached a schedule of items settled on the spot. The procedural irregularities in
respect of which the head of the office veiled assurance about following the
correct procedure in future, should be noted in this schedule.

The draft Inspection Report should be sent to Revenue Sector(Hqr) Section

within 5 working days of completion of audit so that the report may be issued
within one month as per the schedule fixed by the headquarter office.

34
 CHAPTER-8

Statutory records and registers

8.1 A list of registers to be maintained in the district headquarters and

circle office (AnchalAdhikar’s office) is given in Appendix-BI of the Bihar
Government Estates (Khas Mahal) manual. Some important registers out of
which are as follows:

(I) Register IA and IB

Where there has not been any survey and records-of-rights a register
called rent roll or “jamabandi register” will be maintained in form IA.
Where there has been a survey and the records-of-rights are prepared a
register in form IB called as Continuous Khatian is maintained, this
register gives details of each holding held by a tenant of a revenue
village, including annual rental and cess. The original register IA or IB,
as the case may be, is retained in the district headquarters being a
permanent record. In the revenue Anchal copies of these registers are
kept. The Anchal Office is not authorised to make any alteration or
fresh entry in this register. One whole page of more, if necessary, is
allotted to each holding in order to allow for entry of the mutations.

(II) Register II (Tenant’s ledger)

This is also a prescribed statutory register, wherein a separate page is

allotted for each tenancy, the area and annual demand are filled in from
Register IA or IB in the space provided at the top. It is not necessary to
open a new register every year as one page probably lasts for 3 to 5
years. When it becomes necessary to rewrite the register this should be
done before beginning of the year for which it is required for collection
purposes.
References to orders sanctioning abatements of demand, remission,
settlements of unoccupied lands etc, and also recorded in this register.
This is a very important register of the revenue Anchal. Audit should
examine that all entries relating to annual rental of a tenancy have
correctly been depicted in this register and this forms the basis of
annual demand for a tenant, mouza, Halka and revenue Anchal as a
whole.

35
(III) Register IIIA. (Register of collection)

This is a register in which all payments made direct by the tenant to the
HalkaKarmachari/ Panchayat Sewak are entered. A separate volume or
distinct portion of a valume must be kept for a separate estate. This register is
written up and balanced daily.

Audit should see that all rent receipt issued in taken of payment of rent by
tenant have been duly entered in this collection register and daily total and
balancing of collection are correct, and have been carried forward from day to
day.

(IV) Register IV (Cash Book)

This is a register showing all receipts, payments and remittances of money

expect those on account of rent, cess and miscellaneous revenues which are
included in register IIIA. This is mainly a register of daily collection in respect
of Khas Mahal Properly maintained in this district office.

(V) Register IV (Remission register)

This is a register maintained by district, subdivision and Anchal office

incorporation detail of remission cases with orders of competent authority
approving the remission. In the district and Anchal offices audit should see
that separate case records are maintained wherein orders of collector
sanctioning the remission as entered in this register, are kept.

(VI) Mutation Register

This is a register which bears details of change in tenancy caused by sale, gift
succession, partition etc.

(VII) Register of Miscellaneous demands

This register is meant for showing demands, collection and balance in respect
of each sairat for a year. Audit should see that each sairat settled during the
year has been detailed in this register. Demand against each agrees with the
amount at which the sairat in question was approved to be settled. The
recovery is being made in accordance with terms of settlement as stipulated in
settlement or lease deed. On respect of arrears audit should see whether
adequate action has been taken for their recovery and in respect of old
outstanding items audit should see whether certificates have been initiated or
not.

36
(VIII) Return I

In Return-I the demands, collections, remissions and balances of rent and cess
of Estates under direct management of government are furnished. These
figures are prepared from the tenant’s ledger (Register II) by means of a
compilation sheet. The figure for collection is then agreed with the total
figures of collection for the period in question separately compiled from
register III-A and III-B, This return gives full picture of demand, collection
and arrears of rent and cess in the Anchal as a whole. Audit should scrutinize
this return very carefully with a view to ascertaining the correctness of the
demand performance of collection and levy of interest of arrears of road cess
etc.

(IX) Return II

This return is a progressive statement of collection. In this return all collection

made by HalkaKarmachari/Panchayat Sawaks as detailed in register III-A and
also all realizations made by the certificate officer as entered in register III-B,
are included.

(x) Return III (List of defaulters)

A defaulter is a person who has not paid his dues on or before the 31st March.
If any defaulter has paid up his dues in part or whole after the close of the year
a note of the fact will be made in this return together with defaulter’s name
and arrear dues against him. The collector or the officer deputed on that
behalf, shall pass orders after scrutiny of the return to file certificates,
wherever necessary. Audit should see that such certificate action was initiated
against long pending defaulters and sufficiency of action taken as regard other

37
 CHAPTER-9

9.1 Explanatory notes of technical and vernacular terms

Garirmazurua Land – Uncultivated and unsettled Land;

GarirmazuruaAam Land – Uncultivated land for public use, such as,

grazing ground, play ground, burials, gave yards, religious places
village road etc.

Garirmazurua Khas Land –means land retained by ex-intermediaries

and not settled to raiyats subsequently vested in state under Bihar Land
reforms Act.

Sairat- The rights and interests in respect of revenue earning hat,

bazaar, mela, trees, fisheries, jalkars, flakers, ferries etc.

Kabil Lagan- Land fit for rent fixation.

Khata number- Page number of records of Rights/Khatiyan.

Khasra- means Plot Number of revenue map of a revenue village.

Khas Mahal-means the estates under the direct possession/management

of government. It is acquired by (i) purchase at revenue sale, (ii)
purchase by private contract, (iii) escheat in default of legal heirs, (iv)
forfeiture to government for certain offence against the state, (v)
resumption of islands, chars, (vi) acquisition for public purposes & (vii)
resumption of land by government etc.

Bakast land – means land in the cultivating possession of an ex-

intermediary.

Mal- Rent.

Cess- cess means a ‘local rate’ leviable on land and payable by raiyats
under various cess Acts viz., Road cess, Education cess, health cess and
agricultural development cess Acts.

Nazir- Cashier of Revenue Anchal, sub-division and district office.

38
Kabuliyat-Agreement.

Salami-Salami is a lump payment made to the proprietor (Goul) of land

by the raiyat/settle of such land which is equal to market value of the
land or 10 times of the annual rental for settlement of such land for
commercial or agricultural purposes, as the case may be.

Pattas- Title deeds.

Zabti- Regulation.

Mauzas- Revenue villages

Cadastral survey- Survey of land detailed extent, value and ownership

of land for taxation.

Khatiyan- Records of Rights.

Halka- A group of revenue village

Mutation- Entry of name of present tenant in tenant’s ledger by deleting

the name of old tenant.

Estate- Estate means included under one entry in any of the general
registers of revenue paying lands and revenue free lands, prepared and
maintained under the law for the time being in force by the Collector of
a district and includes Government Khas Mahals and revenue freelands
not entered in any register.

Landlord- means any person immediately under whom a tenant holds

land, and includes the Government.

Tenure- means a parcel or parcels of land held by a raiyat and forming

the subject of a separate tenancy.

Proprietor- means a person owning whether in trust or for this own

benefit, an estate or a part of an estate.

Raiyat- means primarily a person who has acquired a right to; hold
land for the purpose of cultivating it by himself, or by members of his
family or by hired servants or with the aid of partners and includes also
the successors in interest of persons who have acquired such a right.

Reserve jama- Reserve jama is fixed sum on the basis of which a sairat
is put to auction for settlement or at which sairat is settled.

39
Parta-unfit for settlement.

Parwana-Order for settlement of sairat.

Jalkar- A fishery or makhana or fishery-cum-makhanasairat.

Falkar- Fruit producing Sairati interest.

Occupancy raiyats- Raiyats having right over a land by being in

possession of the land.

40
 CHAPTER-10

10.1 Copies of important executive decisions/instructions:

No.
1. 85-30-8/74 633R dated Transfer of such Hats, Bazars and Melas
15.04.1974 to Market Committees which have been
notified under Bihar Agriculture Produce
Market Act, 1960 and credit of 20 per
cent income of the Market Committees to
Government account.
2. 105-2-0-9/77-525R regarding taking back of such Hats dt.
26.02.1977 Bazars and Meals from the administration
of Market Committees in respect of
which
3. 5-LR (SRT) 4-53-70/ Principles to be followed in fixation of
15345.R dt. 26.12.1970 reserve jama for settlement of Jalkars.
4. 8 (S) 5-72-1613 L. R. Regarding registration of
agreements/ deeds of sairat settlement.
5. 10/S-2-0-37/79-1388 Regarding declaration of Jalkars/falkarsdt.
22.7.1981 as parta.
6. E/SRT -1-133-68-7095R Delegation of powers of sairats
Dt. 05.08.1968
7. Resolution No.14/S-2- Regarding transfer of fisheries to Animal
0/17/86-2443 R. dt. Husbandry and Fishery Department
24/26.12.1986 (Fishery Department) for development,
settlement and collection of revenue.
8. M/S-08/87M/707 dt. Regarding alternative executive
11.05.197 Instructions / decisions for settlement of
jalkars in view of transfer of fisheries to
fisheries department.

9. Chart showing rates of various cesses

leviable on land rent from time to time.

10. Letter No.15/cess-08 Current rates of cesses (viz, road

/82-1284 R dt.3/4.6.
1982 of Revenue and land Cess, Education Cess, Health Cess and
Reforms Department Agriculture Development cess).

41
11. Extract from CAG’s Regarding devolution of duty among
circular of 1984 members of audit party in field audit.

Rates of all cesse (taken together) leviable from time to time:

1.4.52 to 31.3.59 6.25% (Road Cess)

1.4.59 to 31.3.71 12.5% (Road Cess 6.25% +Education cess 6.25%)

1.4.71 to 31.3.72 21.25% (Road Cess 6.25% + Education cess 15%)

1.4.72 to 31.3.73 39.5% (Road Cess 6.05% + Edn. Cess 15% + Health
cess 18%)
1.4.73 to 30.9.74 51.25 % (R. Cess 6.25% + Edn. Cess 25%+Health cess
20%)
1.10.74 to 31.3.80 100% (Road Cess 20% + Edn. Cess 40% + Health cess
40%)
1.4.80 to 31.3.82 125% (Road Cess 25% + Edn. Cess 50% + Health cess
40% + Agri. Dev. Cess 10%.)
1.4.82 to date 145% (Road Cess 25% + Edn. Cess 50% +Health cess
50% +Agri. Dev. Cess 20%.)

Rates of various cesses leviable from time to time:

Road Cess 6.25% - 1.4.52 to 30.9.74

20% - 1.10.74 to 31.3.80
25% -1.4.80 to-date
Education cess 6.25% -1.4.59 to 31.3.71
15% - 1.4.71 to 31.3.73
25% -1.4.73 to 30.9.74
40% -1.10.74 to 31.3.80
50%- 1.4.80 to-date/
Health cess 20% - 14.5.72 to 30.9.74 or (72-73-18%)
40% - 1.10.74 to 31.3.82
50% -1.4.82 to-date
Agri. Dev. Cess 10% - 1.4.80 to 31.3.82
20% - 1.4.82 to-date
Extract from the Comptroller and Auditor General’s Circular No. 6
of 1984 received with letter No. 252-Rec. AIV/3 (i) -84 Government
revenue. I dated 28.2.1984.

42
Subject: - Re-devolution of duties of members of State Receipt Audit
Parties.

LAND REVENUE
I. Audit Officer:
1. Reviews of items marked with asterisk and discussion of
outstanding Local audit report paras.
2. Review of system of exemption from land revenue.
3. Review of periodicity of settlement of revenue inequalities
arising from failure to effect re-settlement of types of lands
whose yields have increased or decreased disproportionately in
comparison to general class of land
4. Review of system for reconciliation of recoveries posted in
departmental records with recoveries as per treasury records.
5. System for raising and enforcement of demands.
6. System for enforcing recovery of demands and pursuing
arrears demands.
II. Assistant Audit Officer/Section Officer/Sr. Auditor/Auditor
(to be allotted by Audit Officer or Sr. Assistant Audit Officer
designated by Audit Officer).
1. Audit of demands raised, their correctness, computation and
assessment, classification of lands, demands for other dues,
charges, fees etc.
2. Check of other records and registers including grant of
exemptions and refunds and connected files, cash books,
receipt books, records received from Irrigation and works
departments and other departments for effecting recoveries as
arrears of land revenue.
3. Any other item of work allotted by the Audit Officer or
Assistant Audit Officer designated by Audit Officer.

Holding exempted from payment of land rent

By an ordinance issued in 1978, (since enacted in 1981) Government
exempted from levy of land rent with effect from 1.4.1978, small
holdings upto 3 hectares in the districts of Ranchi, Palamu, Singhbhum,
Hazaribag, Giridih, Dhanbad and Santhalpargna and upto 2 hectares in
all other districts. The ordinance/enactment envisage the detailed
procedure for identification of raiyats to decide eligibility for this
exemption. As per the ordinance, such holdings were not exempted from
43
levy of various cesses like road cess, education cess and health cess,
Agricultural development Cess deviable under the relevant cess Acts.
Similarly Agriculture development Cess was leviable on such holdings
under the Agricultural development Cess Act from 1st April 1980.
[Bihar Act 21, 1993]

THE BIHAR TENACY (AMENDMENT) ACT, 1993

AS
ACT

To amend the Bihar Tenancy Act, 1885.

Be it enacted by legislature of the State of Bihar in the forty fourth year

of the Republic of India as follow:-

1. Short title and commencement – (i) This Act may be called the Bihar
Tenancy (Amendment) Act, 1993.

(2) It shall come into force at once.

2. Amendment of Section 23 of Bihar Act, 8 of 1885- Section 23 of

Bihar Tenancy Act, 1885 (Bihar Act 8 of 1885).

(i) In sub-section (1) after the word “tenancy” the words and
figure “expect as provided in sub-section (1) shall be
inserted.

(ii) After sub-section (3) the following new sub-sections shall be

inserted, namely:-

(4) A raiyat may, with the previous permission of the Collector,

use his land for the purposes not enumerated in Sub
section (2):

Provided that before giving such permission the Collector

shall re-determine the rent of such land in the prescribe
manner to the extent of five per cent of the market value of
the land:-

Provided further that if a raiyat has not taken prior permission

of the Collector, the Collector may give post facto permission
on payment of double amount of the rent which he would
have paid for obtaining prior permission, for the period
44
 between the date of commencement of use for purposes other
than those enumerated in sub-section:

(2) and the date of application or detection, as the case may

be:

Provided also that if a raiyat has been using his land for
purposes other than those enumerated in sub section (2), from
before the commencement of this Act, he shall apply within
90 days of the date of commencement of this Act for
permission to the Collector who on receipt of such application
shall proceed in such manner as if the above use had started
on the date of commencement of this Act. If the raiyat fails to
do so, he shall be liable for payment of double amount of the
rent which he would have been liable to pay, had he applied in
time for the period between the date of commencement of this
Act and the date of application or detection as the case may
be:

Provided further also that the Collector shall have the

power to revise the rent so determined after every ten years.

5 (a) An appeal against an order passed under this section shall lie
within a period of 30 days form the date of such order-

(i) If such order is passed by an officer other than the

Collector of a district to the Collector of the district or
to any officer specially empowered by the State
Government by notification to hear such appeals and
(ii) If so order is passed by the Collector of a district, to the
prescribed authority.
(iii) The Collector of the district may, at any time, transfer
any appeal field before him to any officer specially
empowered to hear such appeals or withdraw any
appeal pending before any officer so empowered, and
either hear such appeal himself or transfer it for
disposal to any other officer so empowered.
(iv) Appeals under this section shall be heard and disposed
of in accordance with the prescribed procedure:

45
 CHAPTER-11

Standard for review of internal control of Land Revenue

Internal control structures are the plans of an organisation including

management’s attitude/methods, procedures and measures intended to provide
reasonable assurance of proper enforcement of Acts, rules and departmental
instructions. These also help in prevention and detection of frauds and evasion of
tax alongwith other irregularities. The internal control structures help in creation
of reliable financial and management information system for efficient and
effective services and for adequate safeguard against evasion of Land Rent, Cess
and Surcharge.

It is, therefore, the responsibility of the department to ensure that a proper

internal control structures is instituted, reviewed and up-dated from time to time
to safeguard survey, settlement, rent fixation and collection of Rent and Cess
together with prevention and detection of frauds and evasion of Government
revenue.

The assessment, levy of collection of land revenue is governed by State

land reforms laws and rules framed/administrative instructions issued from time
to time thereunder.

While reviewing the internal control structures of the Revenue Department,

we are required to evaluate:

1. Whether there exist in internal control structures in the department.

2. Are the controls instituted are adequate to safeguard the interest of the
department in achieving its objectives.
3. Whether the control measures are effective, i.e, they are in actual
application in day to day operation of the department.
In course of evaluating the above factors, we should have a clear cut
understanding of the objective, Organisational structures and internal
control instituted by the department through Act/Rules and Executive
Instructions issued in this regard.

However, keeping in mind the activities of the department in

formulating plan and procedure for assessment, levy and collection of rent,
cess, surcharge without any leakage/evasion of revenue with minimum
revenue remaining outstanding, widening revenue base for augmentation
46
of revenue in grey areas and framing policies and procedures for additional
mobilization of resources, we may asses the following:-
1. Whether internal control instituted by the department provides
reasonable assurance that the aforementioned objective of the
department will be accomplished.
Reasonable assurance equates to a satisfactory level of confidence
under given condition i.e. minimum cost of collection of revenue,
maximum collection with minimum risk of fraud, evasion of revenue
and other irregularities taking place.
2. Whether higher authorities and employees of the department maintain
and demonstrate a positive and supportive attitude towards internal
control at all times.
If top higher authority believes that internal control is important, others
in the department will sense that and will respond conscientiously
observing the control established.
3. Whether higher authorities and employees of the department have the
personal and professional integrity and maintain a level of competence
that allows them to understand the importance of developing,
implementing and maintaining good internal control accomplish the
general objectives of internal control.
4. Whether the department has developed specific control objectives for
each activity of the department and are appropriate, comprehensive,
reasonable and integrated into the overall objective of the department
i.e. for settlement, rent fixation, mutation, returns, assessments,
recovery of demands, exemptions, valuation, refunds, remission,
adjustments, and other incidental activities.
5. Whether higher authorities are continuously monitoring the application
of internal control instituted and take prompt responsive action on all
findings of irregular, uneconomical, inefficient and ineffective
activities.
Continuously monitoring the application of internal control ensures that
internal control are achieving the desired results, if not, the department
may take corrective action promptly to achieve its objective.
Monitoring also includes addressing audit findings and
recommendation report by the auditors to determine what corrective
action are needed.
6. Whether the internal controls are clearly documented together with all
transactions and significant events and the documents are readily
available for examination.
47
 Periodically examination of position of survey of land, settlement, Rent
fixation, Zamabandi Register, Returns, assessment, Demand Register
and position of arrears of revenue etc. helps in tracing the irregularities
from its inception and taking prompt and effective measures.
7. Whether all transactions and significant events promptly recorded and
properly classified.
Proper recording of land in KhataAbhidhariPustika, records of
settlement and distribution of land, proper maintenance of demand
register and arrears dues, proper accountal of rent, cess etc.
8. Whether key duties and responsibilities relating to transactions and
events have been quantified by the department among individual
authority.
Qualification of duties and responsibilities in respect of assessment,
compensation, refunds and revisions reduces the risk of error in levy
collection of revenue, irregular refunds compensation, exemption and
remissions and not detecting such problems in time.
9. Whether the department has specified nay authority for survey and
settlement of land, Rent fixation, assessment and collection of rent and
cess and these functions have been executed by them only i.e.
segregation of duties reduced of the risk of errors, loss of Government
revenue and other irregularities.
10.Whether competent supervision have been provided higher authorities
of the department to ensure that internal controls objectives are
achieved.
11.Whether the department has fixed accountability for resources.
It reduces the risk of misuse of resources.
12. Whether access to records in limits to the authorized individuals who
are accountable for the custody and use of records.
Limits access to records help to reducing the risk of unauthorized use of
loss to Government revenue and other irregularities taking place. Thus
assessing of internal controls procedures implies:-
1. Determining the significance and the sensitively of the risk for which
controls are being assessed.
2. Assessing the susceptibility to misuse of resources, failure to attain
objective regarding ethics, economy, efficiency and affectivity, or
failure to fulfil accountability obligation and non-compliance with laws
and regulations.
3. Identifying and understanding the relevant internal controls.
4. Determining what is already known about control effectiveness.
48
 5. Assessing the adequacy of the control designs.
6. Determining, through testing, if control and effective.
7. Reporting on the internal controls assessments and recommending the
department.

Assessment of specific control objectives developed for each activity of

the department:-

Settlement of different government land

(Section 104-A of Bihar Tenancy Act, 1855, Bihar Land Reforms Act,
1950 Bihar Estate (Khas Mahal) Act, 1953).

Land under Khas Mahal, Gairmazurua Khas Land vested in Stateland

acquired under Land Acquisition Act and Bhoodan Land etc. may be settled by
the Government with individuals any institution or society for agricultural,
residential or commercial purposes at a fair and equitable rent and salami. If the
land in question is settled for agricultural use of rent is to be assessed at rates
applicable of lands of similar quality and with similar advantage in the vicinity.
The rate of salami should not exceed ten times of such rental. If, however,
settlement is made for non-agricultural purposes the salami is to be first equal to
current market value of the land in the vicinity and annual rental will be ten times
of previous rent percent and 2 percent of such salami for commercial or
residential use respectively of such land. Settlement of town Khas Mahal is made
on the basis of lease subject to renewal and revision at prescribed periodicity in
the lease and deed and rent at double the existing annual rent.

Town Khas Mahal Land (Bihar Estate (Khas Mahal) Mannual 1953) and
Bihar Land Reforms Act, 1950.

--Whether the grant of lease is as per Act, Rules and executive instructions.

--Whether the lease deed is executed properly.

--Whether the land is used for the purpose mentioned in the lease deed-5-

--Whether the lease has applied for the removal of lease at proper time.

--Whether the renewal is done as per Act and Rules.

--Whether all the revenues of the government are safeguarded.

49
GairmazaruaKhas Land (Bihar Tenancy Act, 1855 and Bihar Land Reforms
Act, 1950).

--Whether the settlement is made with the adequate persons i.e. landless,
schedule caste, schedule tribes, other backward classes and cooperative
socities.

--Whether land is on their possessions.

--Whether the zamabandi is opened in the names of the settles.

--Whether the doubtful zamabandi is cared for.

--Whether rent is fixed on fair and equitable basis.

--Whether the GM Khas land is surveyed from time to time.

Land required under ceiling Act (Bihar Land Ceiling Act, 1961 and Bihar
Land reforms Act, 1950)

--Whether the distribution of such land is done with the requisite person.

--Whether they are in a possession of such beneficiaries or by their legal

heir.

--Whether Zamabandi is opened in the name of the settles

--Whether rent is fixed on fair and equitable basis

--Whether these lands are surveyed from time to time.

Bhoodan land (BhoodanYagyan Act, 1954 and Bihar Land reforms Act,
1950)

--Whether the distribution of such land is done with the requisite person.

--Whether they are in a person of land.

--Whether Zamabandi is opened in the names of the settles.

--Whether rent is fixed on fair and equitable basis.

--Whether these land are surveyed from time to time.

Encroachment of Public land (Bihar Public land and encroachment Act,

1956 and (Bihar Estate (Khas Mahal) Mannual 1953)

--Whether steps are taken for evacuation of encroachment.

50
 --Whether all the public lands are surveyed for verification of
encroachment.

--Whether nature of encroachment are decided.

--Whether steps are taken for regularize or restore such public land.

Levy and collection of rent, cess etc. (Section 24 of Bihar Tenancy Act, 1855
and Bihar Land Reforms Act, 1950).

Levy and collection of land revenue government by the provisions of land

Revenue Act, Tenancy Act and rules made thereunder by the State Government.

--Whether rent and cess are fixed properly.

--The collection of utilization of data necessary for the computation of the

demands or refunds under law.

--The prompt raising of demands

--The regular accounting of demands, collection and refunds.

--The correct amounting and allocation of collection and their credits to

the consolidated funds of the state.

--That proper safeguards exists to ensure that there is no wilful omission

or negligence to levy, or collect Rent, cess.

--The double or fraudulent refunds or other losses of revenue are

promptly brought to light and are investigated.

Arrear of dues

Arrear of rent, cess and other dues of land revenue and by issue of
certificates by the Collector under Bihar and Orissa Public Demand and
Recovery Act, 1914. No Interest is leviable on arrears of rent Khas Mahal. There
is not provision for charging interest on arrears of other cesses.

--Whether Register of Arrears is maintained.

--Whether demand notice is issued for recovery

--After non-recovery of dues on demand notices, whether certificates are

filed.

--Whether certificate case Register (Register-IX) is maintained.

51
 --Whether certificate cases is filed on correct names and address of the
debtors.

--Whether certificate cases are filed on time so that Government does not
sustain a loss of interest (Simple interest at the rate of 12 per cent).

Accountal of rent, cess etc.

--Whether rent receipt of collecting agent (Karmchari or panchayat

sewak) is entered for each collection in Register-III-A.

--Whether the abstract of daily collection is kept in Register-III-AA.

--Whether the collection made by Karmchari or panchayat sewak during

the week for any prescribed period is deposited with the AnchakNazir who grants
Nazir’s receipt in respect of each such deposit.

--Whether each receipt of Nazir’s receipt book is entered in the receipt side
of the cash book of the circle (Anchal).

--Whether the total collection of the circle as a whole is remitted into

treasury through treasury challans at frequent intervals and credited into
appropriate head of accounts.

Miscellaneous

Sanction of remission and communication thereof (Bihar Tenancy Act, 1855

and Bihar Estate (Khas Mahal) Mannual 1953)

--Whether suitable orders are passed by the collector on receipt of the sub-
divisional officers recommendations for remission and suspension of demands is
regard to list of defaulters(Return III)

--Whether remission and suspension are entered in the district Remission

Register-VI and a copy of the order sanctioning each remission or suspension is
sent to sub-divisional officer for necessary action.

--Whether after receiving orders sanctioning the remission and suspension,

the necessary entry is made in the sub-divisional Remission Register-VI in the
same form.

--Whether after receiving orders sanctioning remissions or suspensions in

the Anchal Offices for affecting action regarding the emission etc under
Paragraph-11 of ‘the instructions for the guidance of the circle officers in

52
Government Estate’ the same is entered in the Remission Register-VI in his
office.

--Whether a copy of the entry is sent to karmchari concerned together with

an “Advance list” which is to be returned by the karmchari with an endorsement
acknowledging receipt and certifying that he has made necessary entries in his
register.

--Whether such advice list is kept in a separate guard file.

--Whether the total remissions sanctioned by various authorities is shown

in Annual Return No. 1 separately.

Alienation of Government land

Alienation of Government land means the transfer of Government land

(Khas Land, Vested GairMazarua land and land acquired under land acquisition
Act for allotment to industries etc.)

--Whether transfer of government land is by private sale, lease or otherwise to

public bodies, association or individuals.

--Whether such alienation is by authority subordinate to state Government.

--Whether proposal for such alienation is initiated and processed at district level
and forwarded to Government through Divisional Commissioner.

--Whether there is check slip clearly specifying the object and terms of transfer
with details of areas, market value and estimated annual rental of the land.

--Whether the State Government has facilitated the fixation of agricultural,

commercial or residential rent as the case may be.

--Whether a formal deed is executed with the transferee.

--Whether the land is transferred for a specified period at a fixed annual rent.

Exemption of rent under Bihar Land Rent (Exemption from payment) Act,
1981

--By an ordinance issued in 1978 (since enacted in 1981)

Government exempted from levy of land rent with effect from 1 st April 1978,
small holdings upto 3 hectares in the district of Ranchi, Palamu, Singhbhum,
hazaribagh, Giridih, Dhanbad and SanthalParganas and upto 2 hectares in all
other districts.
53
--Whether return-I prepared after exemption.

--Whether identification of the raiyats is done to decide eligibility for the

exemption.

--Whether various cesses like road cess, education cess, health cess and
agricultural development cess is levied and collected because exemption is only
for rent.

54
 Check list of Additional Collector (AC)
1. Cash Book- Checking of OB/CB of General as well as all subsidiary cash books, Najir receipt
with subsidiary cash book U/H-0029,
2. Bill Book
3. Remittance Register with challan
4. Acquaintance Roll
5. Contingent Register and vouchers
6. Service Book alongwith concerned personal files
7. Compliance Report of old inspection report of the A.G.(Audit).
8. Bank pass book/ Bank statement and Bank reconciliation statement.
9. Government Land Registers i.e. G.M. Khas, G.M. Aam, Bakast, ceiling, Bhoodan land etc.
10. Money Receipt along with Stock Register.
11. Sairat Registers and relevant files.
12. Survey report conducted by this office or higher authority relating to conversion of agriculture
land into non-agriculture Purposes.
13. Files relating to transfer of Government Land.
14. Rent fixation registers/ files.
15. Files/ records relating to Khas Mahal i.e. renewal of lease, expired lease, violation of residual
land of Khas Mahal in respect of permanent lease and temporary lease.
16. Defalcation/ Theft/ Losses/ Legal cases files.
17. Files relating to suspension and departmental action against employees.
18. Stock Register of consumable and permanent articles.
19. Temporary Advance Register.
20. Register of allotment and expenditure.
21. Audit Report of Finance Department.
22. Inspection Report of higher authorities.
23. T.A. Register and office copy of T.A. bill.
24. Annual Financial Report (Return I).
25. Monthly Progress Report.
26. Scrutiny of Pending cases.
27. Guard files of orders and circulars.
28. History sheet, repair file and Log Book of vehicles.
29. Register/ files regarding encroachment cases.

55
 Check list of Circle Office (CO)
1. Cash Book- Checking of OB/CB of General as well as all subsidiary cash books, Najir receipt
with subsidiary cash book under head –0029, Totaling and detail check(receipt & payment) of
selected months on the basis of revenue receipt.
2. Bill Book- Details check of selected months.
3. Acquaintance Roll- Details check of selected months.
4. Remittance Register with challan- Checking of remittance register with challan under head
0029-subsidiary cash book and verification with treasury schedule.
5. Contingent Register and vouchers- Details check of selected months.
6. Service Book along with concerned personal files
7. Compliance Report of old inspection report of the A.G.(Audit).
8. Bank pass book/ Bank statement and Bank reconciliation statement- Verify of closing details
of last audit month with vouchers, Advance register, Bank statement etc.
9. Government Land registers i.e. G.M. Khas land and Bhoodan land register along with files-
Scrutiny of settled and unsettled government land.
10. Money Receipt along with Stock Register.
11. Sairat Registers and relevant files- Checking of settled Sairat and amount deposited into
treasury.
12. Cheque issue Register- Details check of selected months.
13. Records relating to commercial rent and conversion of Agriculture land.
14. Temporary Advance Register- Details check of outstanding temporary advance with different
staffs.
15. Details of outstanding DC bill.
16. Files relating to court cases/ theft/ Loss/ Embezzlement etc. and statement obtained.
17. GPF Advance Register and Sanction files.
18. Register of allotment and expenditure- Checking only last three years.
19. Register of files regarding encroachment cases- Action taken against encroachers by Circle
Officer of encroached land.
20. Stock Register of consumable and permanent articles.
21. Log book, history sheet of vehicles- Verify vouchers of fuel consumption.
22. Mutation Register- Number of mutation done and outstandings.
23. Records of different Halkas i.e. I-A, I-B, III-A and III- AA along with rent receipt- Test check of
register 3A, 3AA with rent receipt volume and guard file of Nazir receipt.
24. Annual Progress Report (Return I)- Last three years.
25. Monthly Progress Report- Last audited month.
26. Audit Report of Finance Department.
27. Guard files of orders and circulars.
28. Target: - Collection File/Register.
29. Certificate cases and register-IX

56
 Audit Design Matrix for Compliance Audit of Revenue and Land Reforms Department

Sl. Audit Objectives Sub objectives Audit Questions Audit Criteria Evidence Data
no. Collection and
Analysis
method
1 2 3 4 5 6 7
1 Preparation of 1. The collection 1. Whether the collection of revenue was Act/Rules and Key Requisition for
demand and of revenue was made as per the annual demand fixed for the executive documents records/files/re
collection of made as per the year? instructions from levant
revenue and its annual demand made by the respective statement from
consolidation fixed for the 2. Whether all the components of revenue department from files/ the department
respective District properly reflected in the Return-1 of the time to time for records and concerned
Collector. Department? the control of maintained directorates
activities under at the level and scrutiny of
2. The demand 3. Whether proper monitoring existed in the taken by the of concerned files
was inclusive of department for collection of all sorts of department. department for gathering
the revenue revenue? and of data and
realised from directorates their further
settlement of 4. Whether system of internal audit for scrutiny.
sairats, transfer of monitoring of all activities existed in the
land, conversion department?
of agriculture land
for other 5. Whether all the activities were being
purposes, rent and monitored by the department as per the
cesses collected directives of NLRMP and the utilisation of
from the raiyati funds provided for these purposes were
land, khasmahal obtained from the respective units of the
land and department?
settlement of

57
Sl. Audit Objectives Sub objectives Audit Questions Audit Criteria Evidence Data
no. Collection and
Analysis
method
other government
land and
establishment
charges realised in
acquisition of land
from the
requisitioning
authorities.

3. The work of
consolidation of
land and the
survey and
settlement works
were undertaken
by the
government as per
the instructions
issued under the
scheme of
National Land
Records
Modernisation
Programme
(NLRMP).
Quantum of The records 1. Whether the acquire surplus land under 1. Ceiling Act, Key Requisition for
58
Sl. Audit Objectives Sub objectives Audit Questions Audit Criteria Evidence Data
no. Collection and
Analysis
method
acquired surplus relating to ceiling land/bhudan was distributed in toto or 1961 documents records/files/re
land under ceiling acquired surplus the land was still under the possession of 2. Bhudan Act from levant
act, bhudan and its land under ceiling government for further distribution? 3.Executive respective statement from
distribution amount land/bhudan and 2. Whether such distributed land was still in orders/provision/ files/ the
the specified its distribution the name of original allottee or their illegal notifications records department/
persons, distribution were maintained heirs? issued by the maintained respective
of government land, properly at every 3. Whether there exit any case of Government at the level offices of the
purchased raiyati stage. unauthorised transfer of such land by the from time to of Additional
land for distribution original allottee in violation of the Act/Rules? time for purchase department Collector and
of among the of raiyati land /respective Circle Offices
homeless persons and its offices of and scrutiny of
under the provisions distribution the concerned files
of Land Reforms among the Additional for gathering
Act. homeless Collector of data and
persons and Circle their further
Offices scrutiny.
supported
by Gazette
notification
for
acquisition
of surplus
land under
ceiling act,
bhudan and
relevant
59
 Sl. Audit Objectives Sub objectives Audit Questions Audit Criteria Evidence Data
no. Collection and
Analysis
method
documents
of the govt.
land and
purchased
raiyati
land.
2 Whether a system 1.WhetherRevenu 1. Whether the records relating to transfer of 1.Bihar
of proper e and Land government lands were transferred to other Government
Requisition,
coordination existed Reforms department/agencies? Estates (Khas
query,
between Revenue Department has Mahal) Manual,
examination of
and Land Reforms evolved a system 2. Whether the lands acquired/alienated are 1953
files, reports,
Department and to monitor the being used for the purpose for which it was
returns and
other government uses of the land requisitioned? 2. Executive Extract/cop
other relevant
departments/ alienated to other orders/provision/ ies of
records
agencies concerned. department/bodies notifications concerned
maintained by
/associations or issued by the files and
the Revenue
individuals and Government the proper
&Land
the same was from time to register
Reforms Deptt.
being utilised by time were
andthe
them for the maintained
respective
purposes for
offices of the
which the land
ACs, DLAO
were alienated?
and Circle
offices.
2. Whether proper
system existed in
60
 Sl. Audit Objectives Sub objectives Audit Questions Audit Criteria Evidence Data
no. Collection and
Analysis
method
the Department to
safeguard the
encroachment of
government land?

3 An adequate The district and Whether rules/provisions were followed in Norms/provision Inspection Scrutiny of
internal control allied offices respect of transfer of land and collection of s of the relevant reports/ correspondenc
mechanism was in comply with the revenue thereon? Acts, Rules and minutes of e files of the
place for provisions of Whether proper mechanism was available for executive orders the department,
monitoring the acts/rules and collection and remittance of revenue? of the inspection minutes of
proper compliance executive orders Whether the timely completion of Acquisition Government by the meeting,

61
 Sl. Audit Objectives Sub objectives Audit Questions Audit Criteria Evidence Data
no. Collection and
Analysis
method
with rules and properly. process were monitored? from time to higher Inspection
regulation. Whether sound Management Information time. authorities. Reports/returns
System (MIS) were in existence for proper .
monitoring?
Whether remedial measures were being taken
by way of holding inspection of higher
authorities and compliance of the instructions
were being made by the units inspected by
higher authorities?
4 Settlement of Khas Settlement of Whether the settlement of Khas 1. Bihar Key Requisition for
Mahal/Government Khas Mahal/Government land were followed as per Government documents records/files
land. Mahal/Governme Khas Mahal Manual and prescribed Estates (Khas from from office of
nt land through provisions? Mahal) Manual, respective the Additional
lease is being Whether salami and accumulated value of 1953 files/ Collector and
followed in rent were assessed and realized according to 2. Executive records. scrutiny of
accordance wth the provisions? orders/provision/ concerned files
provisions and notifications for gathering
rules. issued by the of evidence for
Government their further
from time to time scrutiny
supported by
sanction orders
of the
department.

62
 Sl. Audit Objectives Sub objectives Audit Questions Audit Criteria Evidence Data
no. Collection and
Analysis
method
5 Settlement of Sairat Settlement of 1. Whether reserve jama were assessed 1.Bihar Key Requisition for
Sairat is being properly as per prescribed provisions and Government documents records/files
followed in notifications? Estates (Khas from from offices of
accordance with 2. Whether notice for tender were issued for Mahal) Manual, respective the Additional
provisions and wide publicity? 1953 files/ Collector,
rules. 3. Whether registered agreement were made 2.Executive records. DCLR, SDOs
between government and highest bidder? orders/provision/ and Circle
4. Whether accumulated revenue were notifications offices.
collected and remitted into concerned head? issued by the
Government
from time to
time

6 System for removal Encroachment of 1. Whether encroached of government land Requisition for
1. Encroachment
of encroachment Government land were removed as per encroachment act? records/files
Act, 1956 Key
land were placed were evicted from 2. Whether fine/penalty were imposed to the from offices of
2. Executive documents
the encroachers encroachers as per provisions? the Additional
orders/provision/ from
3. Whether any system/inspection for Collector,
notifications respective
motoring of government land was developed DCLR, SDOs
issued by the files/
so that encroachment of government land and Circle
Government records.
were noticed offices.
from time to
time
7 Acquisition/alienati Acquisition of Whether the provisions of Acts and Rules Norms/provision Extract/cop Requisition,
on of land was done land is being done were followed properly for acquisition of s of the relevant ies of query,
in accordance with in accordance land. Acts, Rules and concerned examination of
63
Sl. Audit Objectives Sub objectives Audit Questions Audit Criteria Evidence Data
no. Collection and
Analysis
method
the provisions of the with provisions in Whether the awards were finalised within the executive orders files and files, reports,
relevant Acts, Rules stipulated time stipulated time. If not, cost overrun would be of the other returns and
and Regulations etc. schedule. analysed. Government. relevant other relevant
and sanction orders Whether the relevant records have been documents. records
issued by the maintained properly to facilitate the demand maintained by
government from and realisation as per the prepared estimate the Revenue
time to time. for the respective projects. &Land
In what shape the undistributed portion of Reforms Deptt.
award in different project was kept by the and concerned
office and what was its ratio in comparison to offices i.e.
total awards? DLAO, AC,
Establishment Whether the details of areas, market value Circles and
charges are clearly depicted in the estimate. other allied
calculated and Whether the establishment charges were offices.
collected calculated and demanded in conformity with
according to provisions of Act and Rules.
norms prescribed. Whether project wise account of
establishment charges was being maintained.
Contingency Whether the contingency charges were
charges are charged in accordance with the norms
calculated and prescribed.
collected Whether project wise accounts of expenses on
according to this behalf was maintained by the
norms prescribed. acquisitioning authority concerned.
Accumulated Whether the accumulated amount of rent and

64
Sl. Audit Objectives Sub objectives Audit Questions Audit Criteria Evidence Data
no. Collection and
Analysis
method
amount of rent cesses were correctly charged and realised in
and cess on accordance with the norms prescribed.
capitalised value
of rent was levied
and collected
according to
norms prescribed.
Timely remittance Whether the establishment charges and land
of collected rent were remitted into treasury as per the
establishment provisions of Act and Rules.
charge and land
rent in
government
account as per
norms prescribed.
Effects of delayWhether the awards were finalised in
finalization of
stipulated time or not. If not, enhancement of
award would be compensation amount due to payment of
analysed. interest would be analysed and commented
upon.
Reason for non- Whether the notices were served to awardees
payment of to receive payment.
compensation Whether the compensation were paid after
would be due verification of identification.

65
Sl. Audit Objectives Sub objectives Audit Questions Audit Criteria Evidence Data
no. Collection and
Analysis
method
analysed. Whether the compensation amount was paid
to awardees as per schedule.
Deduction of Whether the income tax was deducted
Income Tax from properly from the compensation amount of
payment of non-agriculture/urban agriculture land.
compensation
would be
analysed.
Levy and Whether the proposal for alienation was
collection of initiated and processed at district level and
revenue would be forwarded to government through competent
analysed. authority.
Whether the amount of Salami, in case of
transfer of government land and accumulated
value of rent were calculated, collected and
remitted timely into treasury properly.
Whether the lands acquired/alienated are
being used for the intended purpose for which
it was requisitioned.
Whether the agreement were executed and
Stamp Duty and Registration fee recovered
accordingly
If land were allotted free of cost or on token
money, the basis of such free allotment.
Non realisation of Whether the terms and conditions of leases

66
 Sl. Audit Objectives Sub objectives Audit Questions Audit Criteria Evidence Data
no. Collection and
Analysis
method
revenue due to were followed, lease deed executed on time,
non-renewal of renewal were done properly as per prescribed
lease would be norms or not.
analysed. Whether all money due to Government for
allotment/lease of Government land have
been correctly/promptly realized.
Whether prescribed accounts, records etc.
have been properly maintained.
Whether conversion tax at prescribed rates
have been levied.
Non realisation of Whether the records of leased land are being
revenue due to maintained properly.
non-adherence of Whether the survey is being carried out on
norms/ leased out land.
instructions would Whether any action was initiated by the
be analysed. department on sale or transfer of leased out
property without obtaining prior permission
of the competent authority.
8 Conversion of Appropriate 1. Whether revenue was being realized as per Act/Rules (2010 Extract/cop Requisition for
agriculture land for survey report for the survey reports? & 2011 ies of records/files
other purposes converted 2. Whether collected revenue was being respectively) concerned from DCLR,
agriculture land deposited timely in proper account of the prepared for the files and SDOs and
were prepared by treasury? purpose and other Circle offices.
the SDOs 3. Whether enhanced rate of rent and cesses issue of relevant
concerned suo- were collected from such raiyat by the government documents.

67
 Sl. Audit Objectives Sub objectives Audit Questions Audit Criteria Evidence Data
no. Collection and
Analysis
method
moto or by the concerned circle offices? instructions from
staff of circle time to time
offices under their
controls
9 Collection of rent Rent and cesses of 1. Whether demand of rent were assessed 1. Bihar Tenancy Key Requisition for
and cesses of land land were properly as per prescribed provisions and Act, 1885 documents records/files
were assessed as per notifications? 2. Bihar from from Circle
assessed/collected demand and 2. Whether rent and cesses were collected as Treasury Code, demand offices and
and remitted collection of per demand? 2011 and scrutiny of
properly register (register 3. Whether collected revenue were remitted 3. Executive collection concerned files
II) in accordance into concerned head in timely? orders/provision/ register/Re for gathering
with provisions notifications gister-II of evidence.
and rules. issued by the
Government
from time to
time

68